Wabtec reports record 4Q, full-year results

Wabtec Corp. said Tuesday record fourth-quarter earnings per diluted share of $1.34, 40% above EPS in the fourth quarter of 2011 and topping Wall Street analyst consensus estimates of $1.31. Sales also notched a record, at $610 million, just short of analyst estimates of $611 million, and driven by the company's Transit Group.

For the full year, Wabtec had sales of $2.4 billion, up 14% from the full-year 2011, and earnings per diluted share of $5.19, both records. For the full year, the company generated cash flow from operations of $237 million, or 9.9% of sales.

Wabtec also issued 2013 guidance foreseeing earning per diluted share of about $5.85, with revenue expected to rise 8% to 10% in 2013.

Albert J. Neupaver, Wabtec's president and CEO, said, "The company's performance in 2012 was strong, and we are anticipating another record year in 2013. The freight rail and passenger transit markets remain compelling, as countries around the world continue to make investments to improve and expand their transportation infrastructure. With our diversified business model, balanced growth strategies, and rigorous application of the Wabtec Performance System, we are confident in the company's long-term growth prospects."

In a note to investors late Monday, KeyBanc Capital Markets Inc. analyst Steve Barger, in a note to investors, said, "While we continue to believe WAB is one of the highest quality names in our universe, the combination of our expectation of slower revenue growth, a moderating pace of operating margin expansion, and its current valuation makes it difficult to recommend at these levels. As such, we are maintaining our HOLD rating."